Trump seeks Mexican import tax to pay for border wall

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Image captionSome fencing already exists on the 2,000-mile (3,200km) US boundary with Mexico

President Donald Trump will seek a 20% tax on goods imported from Mexico and use the revenue to build a border wall, the White House spokesman has said.

The plan was announced just after the Mexican president cancelled a visit to Washington, amid a row sparked by the question of who will pay for the wall.

Mr Trump on Wednesday signed an executive order to create a wall on the US southern border with Mexico.

Making Mexico pay for it was one of his key election campaign pledges.

White House spokesman Sean Spicer told reporters that the president had discussed the plan with lawmakers, and that they are considering making it part of a tax reform package the US Congress is planning.

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Image captionTrump and Pena Nieto met in Mexico before the election

He said that such a tax could generate approximately $10bn (£8bn) in tax revenue per year.

Mr Pena Nieto announced earlier on Thursday he had called off next week's trip.